In this news alert:

VIETNAM – Guidance Circular Clarifies Quarterly Reporting Requirement

The Vietnamese authorities have issued circular 40/2016/TT-BLDTBXH, which provides guidelines on the implementation of decree 11/ND-CP/2016, and which comes into effect on 12 December 2016.

The circular clarifies a requirement for employers to report foreign labour usage every quarter, rather than yearly, as previously.

Key Points

Circular 40 introduces a new set of official forms, and provides detailed guidelines clarifying the implementation of decree 11 of April 2016. The main points are as follows:

A new template (Form 14, replacing Form 16) is provided for the foreign labour use report, and companies are required to send this report to the provincial labour department every quarter, before the 5th of the month, rather than annually, as previously. This report should include foreign nationals currently holding work permits, those currently holding work permit exemption certificates and those who are not required to obtain a work permit or a work permit exemption but are currently working in Vietnam for the company.

One of the possible qualification documents accepted for foreign experts and specialists is a confirmation letter issued by an agency, public/private organization or public/private enterprise in oversea confirming the field of expertise.

The documents accepted to justify the proof of employment of at least 12 months within the sending company for intra-company transferees include the assignment letter, a former labour contract or employment decision letter, or a tax or insurance certificate of the foreign employee.

The starting date for the allowed 30 days per stay, not exceeding 90 days per year, for working in Vietnam without a work permit or a work permit exemption certificate, shall be counted from the first date of entry to Vietnam of the employee for work purposes.

For foreign nationals who have been granted a work permit which is still valid and assigned to work at another company’s branch, project or client’s location in another province of Vietnam for a duration of more than 10 day, a new work permit is not required but the employer must report the change of work location to the labour department where the foreign employee is expected to work.

A work permit must be returned to the labour department within 15 days of termination of the employment contract or assignment letter.

Action Items

Employers of foreign nationals in Vietnam should consult their immigration provider to ensure compliance with the new reporting rules.